Arab Republic of Egypt: 2025 Article IV Consultation, Fourth Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Waivers of Nonobservance and Modification of Performance Criteria and Request for an Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Egypt

International Monetary Fund

No 2025/186, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper presents Egypt’s 2025 Article IV Consultation, Fourth Review under the Extended Arrangement under the Extended Fund Facility, Requests for Waivers of Nonobservance and Modification of Performance Criteria and Request for an Arrangement under the Resilience and Sustainability Facility. The Egyptian authorities preserved macroeconomic stability amid a difficult regional environment, but progress on the structural reform agenda was mixed. Strengthening fiscal sustainability requires both effective domestic revenue mobilization and a comprehensive debt management strategy. Broadening the tax base, streamlining tax incentives, and enhancing compliance are essential to creating fiscal space for priority development and social needs. Despite progress, risks remain significant and skewed to the downside. The economic outlook is vulnerable to external shocks and domestic policy challenges. In particular, regional conflicts and trade disruptions could further strain fiscal revenues, foreign direct investment, and external stability. Domestically, needed reforms in energy prices and subsidies and tax policy carry social costs that must be carefully managed, while the state’s extended role in nonstrategic sectors and limited efforts to enhance market competition could impact medium-term growth.

Keywords: market development; liberalized exchange rate regime; market participant; expenditure policy; government initiative; Revenue mobilization; Climate change; Global; Middle East and Central Asia (search for similar items in EconPapers)
Pages: 202
Date: 2025-07-15
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